This website is a collection of horror stories, news reports and other information addressing problems with Paypal, Inc..

PayPal Warning

While we do not have the resources to verify each and every complaint we receive, we do believe that all reports posted here are true based on our own experience with Paypal and the growing number of corroborating horror stories we receive every day. The main subject of the majority of these horror stories is the following:

Your Paypal account can be frozen at any time, without advance notice, leaving you without your money for months (if not forever), and there isn't much you can do about it.If you would like to submit your own PayPal horror story, we would be more than happy to post it for everyone to read, providing that it is truthful and void of inappropriate language. Please feel free to submit your story by clicking Here

How Does PayPal Make Money With My Money?

According to the San Francisco Chronicle, there are approx. 100,000 complaints outstanding at PayPal (Are any of these yours?). In many instances disputes can run on for months leaving people frustrated and out of pocket as they are unable to access their accounts. So what happens to the millions of dollars tied up in frozen accounts and disputes? Well, here is a clip from the San Francisco Chronicle that basically sums it up:

U.S. District Judge Jeremy Fogel of San Jose refused to dismiss a lawsuit that seeks class-action status on behalf of thousands of PayPal customers nationwide. A common allegation is that the company brushes off or stalls customer grievances for months and meanwhile freezes the customer's account and pockets the interest (So that's how they make their money!). No wonder they freeze so many accounts!

Limited by Paypal because “account raised suspicion”

PayPal sucks, I feel for all of you out there, all of you whom PayPal completely and utterly screwed over.
My story starts about a year back. I sell, well sold sneakers and clothing with my PayPal account.
I am in college in NYC and PayPal was the one and only way I supported myself. My knowledge of shoes and clothing was and is very extensive. I can tell if you are wearing a fake pair of Yeezy’s from across the street. So, basically what I am saying is that I made sure only authentic items came and went from accounts.

I got to the point where I was selling five pairs of shoes a day. Making over $2,000. This is where the problems began. I had one person return a pair of shoes. Okay, no big deal…I gave him his money back and it was back to business. I was happy and he was happy. A few weeks later, I had another customer want to return a pair of shoes. Once again, no big deal. It happens, its part of business. Two sneakers out of fifty. Well, PayPal did not like that. So, they limited my account. Why? Because my account raised suspicion. So I called PayPal up and no matter what I had to say their answer was the same. “I know this is not what you want to hear, but this is a very harsh decision that we take very seriously. We want to keep PayPal safe.” No Matter what I had to say, this is all I would get back. They could not go into detail about anything…because if they went into detail the bad people out there could find a way around the rules and PayPal would not be safe. Well, WHAT ABOUT THE GOOD PEOPLE? THE PEOPLE LIKE ME? Well, good people like me do not matter. They could care less. So there I was, over $4,000 in PayPal that I could not use for 180 days as a college student in New York. I had nothing to do. I could not ship items because PayPal was holding all my money. So, I emailed all my customers and got them to open return cases which I approved, of course.

I opened up a website accepting Stripe and got some of those customers to replace their orders via my website. But I did not have the capitol to buy and sell anymore. So my website was stale and nothing was happening.

Sooner or later, I decided to open a new bank account and clear my IP address and all that good stuff and tried to open a new PayPal. It worked, and for two weeks their I sold clothing out of my closet and shoes that I wore to try and get back on track again. Everything was going smoothly, I thought maybe this will work. I could not have been more wrong. I got back to making a couple hundred dollars every few days and was able to start supporting myself again. I made sure all my items could be proven authentic. But nope, once again PayPal swoops in and says my account must be shut down because of fraudulent activity. I called them up and asked why in the world they shut down my account?! What did I expect? An answer that made sense? Yeah right. All the representative had to say was, “Sorry, I know this is not what you want to hear, but I cannot go into detail about this. Just know we have people who are good at their job and this is a permanent decision.” WHY WHY WHY WHY WHY. I was furious, I literally had not done anything but sell some clothing!!!!!! Here I was, back again in the hole completely screwed by PayPal. No money except for the $500 in my account that I could not access. Well, it was eating in the cafeteria and walking everywhere. No school supplies or transportation for me. And here I am, completely and utterly f***ed in the ass by PayPal.

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